Real Estate News with Terri Taydus, GRI, CNA

STOP! If You Are Under Contract to Purchase A Home, You Need to Read This!

October 26th, 2013 12:56 PM by Taydus Taydus



STOP!  DO NOT MAKE ANY LARGE PURCHASES!

If you are securing financing to purchase your new home and are now "under contract" for that purchase, it is very important that you do not incur any new debt.  When you applied for your home loan, your lender pulled your credit report.  However did you know your credit report will be pulled AGAIN just before you close?

This means you do not want to do ANYTHING to change your debt to income ratio by adding a new monthly payment, or increasing a monthly payment that you already have.  

Even though you have been “approved” for your loan, and you have passed your Loan Objection Deadline, the institution that is lending you money will most likely check on your credit one last time “just to make sure” you have not make any large purchases that could inhibit (in their opinion) your ability to make your mortgage loan payment.

Buying a new home is exciting  It is tempting to buy new appliances and furnishings.

But please wait until the home is yours and you have closed before starting your new home shopping spree.  If you really feel that you cannot wait, please speak with your lender before making any large purchases, or incurring any kind of additional debt.

Sadly it DOES and has happened that a home purchase will terminate at the last minute because an excited buyer couldn’t wait to buy that new washer and dryer, and the purchase tipped their debt to income ratio just a little too far for the lender’s comfort.

 

DON’T LET THIS HAPPEN TO YOU!

PLEASE WAIT TO MAKE ANY LARGE PURCHASES,

OR SPEAK TO YOUR LENDER BEFORE DOING SO!

Posted by Taydus Taydus on October 26th, 2013 12:56 PM

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